October 26th Daily Market Comments

The strength in the Dow today is pulling the transportation index backup. The prospects of a tax cut continues to add strength, or at least is not allowing investor sentiment to turn bearish, to the overall market trend. The NASDAQ and S&P 500, although not trading with the same strength as the Dow, are currently illustrating small gains. What potentially looked like bearish sentiment taking control of the market trend yesterday is being offset by new bullish influence today. The best way to keep from being whipsawed is to utilize the T-line as the final reversal confirmation.